Before leaving on an extended (and expensive) vacation, I bought travel insurance. I wanted to protect myself in case I or my traveling partner tested positive for COVID-19. I had to answer a number of questions about my eligibility for such insurance before they would approve me. Nor did the insurance come cheap, but I wanted to protect myself and recover most of my expenses if my trip was canceled.
Insurance is a necessary expense if you want to protect your assets. But, to purchase the insurance you need to meet certain criteria. This is mandatory for health, vehicle, life, business insurance and so on.
As organizations face increasing numbers of cyber threats, cyber insurance is becoming a vital need. It’s a good way to protect against financial loss if there is a data breach or ransomware attack. However, just as you would have to pass a physical and meet certain requirements for life or health insurance, your cybersecurity system will have to undergo its own physical of sorts. Cyber insurers require businesses to meet certain standards and practices before approving a policy.
What Cyber Insurers Want to See
Most insurance rules fall into basic cybersecurity measures, Jack Kudale, founder and CEO of Cowbell Cyber, an AI-powered cyber insurance company for small and medium-sized businesses, explained in an email interview. What insurers want to see are fairly standard best practices, such as multi-factor authentication (MFA), incident response plans and patching processes.
“We are seeing a significant shift where companies are now using cyber insurance requirements to build a compelling business case for higher priority and investment in cybersecurity,” Kudale said. “This can really become a win-win for all, as companies will easily become more secure and resilient to cyberattack ..
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